Based on data released by the National Bureau of Statistics (NBS), Nigeria recorded total foreign trade of N12.05 trillion in the first quarter of 2023, this represents a 17.5% decrease compared to N14.6 trillion recorded in Q1 2022. However, the total foreign trade value increased marginally by 2.8% from N11.72 trillion recorded in Q4 2022. Nigeria’s imports stood at N5.56 trillion in Q1 2023 compared with N5.36 trillion and N7.49 trillion in Q4 and Q1 2022 respectively.
On the flip side, Nigeria’s exports increased slightly by 2% to N6.49 trillion in the review quarter from N6.36trn recorded in Q4 2022 but declined 8.7% from N7.1trn in Q1 2022. This translates to a trade surplus of N927.2bn in Q1 2023, down from N996.8bn recorded in the previous quarter but compares favorably with the trade deficit of N393.6bn recorded in the corresponding period of 2022. We believe the marginal q/q increase in exports could be
attributed to improved crude oil production. The country recorded an average daily oil production of 1.51 million barrels per day (mbpd) in Q1 2023, higher than the daily average production of 1.41mbpd recorded in Q4 2022.
In terms of percentage contribution, crude oil continued to dominate export earnings with a total value of N5.5trn representing 79.37%, followed by ‘natural gas liquefied’ with a value of N622.36bn accounting for 9.59%. On the other hand, motor spirit and gas oil accounted for the highest value (26.84%) of total imports in Q4 2022. In terms of destination, the Netherlands topped the export destination list closely followed by the United States. China topped the list on the import chart, followed by the Netherlands. Despite the commencement of the Africa Continental Free Trade Area (AfCFTA) coming into force, the Ivory Coast was the only African country among the top ten destinations of Nigeria’s exports. We note that the constant devaluation of the Naira and the persistent scarcity of FX has continued to hamper trade.
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By CSL Research
